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Communications regulator Icasa this week issued a notice in the Government Gazette signalling its intention to review the process of telecommunications licensing in South Africa.
This follows a policy directive from communications minister Solly Malatsi in August to this effect. The directive asked Icasa to launch an inquiry into the process for granting individual electronic communications network (I-ECNS) licences.
“The purpose of the inquiry is to consider whether or not the implementation of the framework in the Electronic Communications Act, which allows for the transfer of I-ECNS licences has been effective and efficient with regard to the promotion of competition within the sector,” Icasa said in the notice.
Icasa it will also use the I-ECNS licensing inquiry to assess the demand for and need to invite applications for new such licences and whether granting these will contribute to broader objectives around universal access.
According to ICT sector lawyer Dominic Cull, who serves as regulatory adviser to the Internet Service Providers’ Association, the move will simplify licensing for telecoms companies looking to establish a national footprint. As it stands, operators looking for an I-ECNS licence must find an existing licensee and acquire their licence on a willing buyer/willing seller basis. Cull said there are between 500 and 600 licences in circulation.
The current licensing structure is a remnant of the conversion, in 2009, from the old Telecommunications Act to the Electronic Communications Act (ECA). Under the old legislation, there were only seven licensees allowed to operate using licences equivalent to the modern I-ECNS one: Vodacom, MTN, Telkom, Cell C, Neotel, Sentech and Internet Solutions.
Altech case
A legal case brought by Altech – then a subsidiary of Altron – saw the older value-added network service licensees also being entitled to I-ECNS licences.
The case, decided in 2008, led to the liberalisation of the telecoms market by effectively breaking the monopoly that a small handful of licensees had on the market. This led to lower data costs for South Africans and large, national-scale fibre deployments.
Read: Malatsi promises to tear up old policy playbook
Communications sector roleplayers have 45 days to respond to a questionnaire from Icasa, which plans to use the feedback to prepare a discussion document that will form the basis for public hearings.
The draft policy directive regarding I-ECNS licensing was issued in May and finalised in August. According to Cull, Icasa’s speedy resolution of the I-ECNS directive is good news.
“The minister gave Icasa three months to commence the inquiry and Icasa has met that deadline. A bouquet [is due] for the regulator for launching this within the timeframes required,” said Cull. – © 2025 NewsCentral Media
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